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Procedure documentationGenerating a PCN874 Report: Israel Locate this document in the navigation structure

 

SAP Business One helps you generate a PCN874 report in the electronic file format to be submitted to the tax authorities.

Recommendation Recommendation

Use different G/L accounts for the Tax Deduction Account (input VAT) and the Fixed Assets VAT Account. This enables you to differentiate between VAT postings for fixed assets and for other transaction types.

Whenever an A/P invoice includes a Fixed Assets VAT Account (G/L Account Determination value), SAP Business One takes the value posted to Other type G/L accounts in the journal entry, excluding the BP Control Account, and uses this value as the operational amount.

Whenever a manual journal entry involves the Fixed Assets VAT Account (G/L Account Determination) value, SAP Business One takes the value posted to Other type G/L accounts in the journal entry, excluding the BP Control Account, and uses this value as the operational amount.

If Expenditure type G/L account postings exist, the operational amount is calculated from both Other and Expenditure types, and SAP Business One displays an error message stating that the combination of Fixed Assets VAT Account and Expenditure Account is not allowed.

End of the recommendation.

Prerequisites

  • You have ensured that transactions contain federal tax IDs, when required.

    • For each A/R invoice and journal entry with a business partner or with VAT, make sure that a federal tax ID is provided, unless the transaction value does not exceed the amount entered in the Transactional Limit field in the PCN 874 Report window. If transactions do not contain a federal tax ID when required, an error message appears.

    • For each A/P invoice, except for petty cash transactions, a federal tax ID must exist. If transactions do not contain a federal tax ID when required, an error message appears.

  • You have ensured that a ship-to address exists for each invoice and business partner, so that SAP Business One can match transactions and journal entries to business partners.

Procedure

  1. From the SAP Business One Main Menu, choose   Financials   Financials Reports   Accounting   Tax   Tax Report  . The Tax Report window appears.

  2. Select the required dates for the documents.

    Recommendation Recommendation

    To include documents that are related to one period, but added in the subsequent period in the PCN874 report, specify an extra reporting date for each document in a user-defined field (UDF), and filter these documents using the reporting period function. Proceed as follows:

    1. Create two UDFs with the same name on the manual journal entries header and the marketing documents header, respectively. Specify the fields as type Date/Time.

    2. When you add a document, specify a reporting date in the UDF.

      To set a default value for the UDF, for example, the posting date, create a user query for the posting date field and set a user-defined value (UDV) in the UDF.

    3. In the Tax Report window, define the date range, select Reporting Period, and enter the name of the UDFs.

    For more information about the procedure, see SAP Note 1428291.

    For more information about creating and using UDFs, UDVs and queries, see the following documents in SAP Business One Customer Portal, at http://service.sap.com/smb/sbocustomer/documentation:

    • How to Create User-Defined Fields and Tables

    • How to Define and Use User-Defined Values

    End of the recommendation.

  3. Choose the Create File button, and then select the PCN 874 Report option.

    The PCN 874 Report window appears.

  4. In the Transaction Codes Categorization field, choose Browse (Browse). The Transaction Codes Categorization window appears.

  5. In the Trans. Category for PCN 874 field, select one of the following document types to categorize each transaction code for the report:

    • None

      Default for transactions that are not classified by transaction code.

    • Import Log

      Document type R. Manual transactions created for import entries.

    • Export Log

      Document type Y. Transactions involving vendors with an overseas billing address and defined as tax-exempt in the business partner master data.

    • Other

      Document type H. Transactions that are not assigned to a document type and that are classified by transaction code.

    • A/R Trans. — Palestinian Territory

      Document type I. Income from sales to customers with a ship-to address in the Palestinian Authority and with a federal tax ID, as defined in the business partner master data.

    • A/P Trans. — Palestinian Territory

      Document type P. Transactions involving vendors with a ship-to address in the Palestinian Authority and with a federal tax ID, as defined in the business partner master data.

    • Self-Employed — Sales

      Document type M. A/R invoices involving customers classified as self-employed.

    • Self-Employed — Purchase

      Document type C. A/P invoices involving vendors classified as self-employed.

    Even if you do not make any selection, each transaction included in the report is categorized automatically as one document type .

    Note Note

    The last two document types above are available only if you run perpetual or continuous inventory.

    End of the note.

  6. When you have finished, choose the Update button, and then the OK button to return to the PCN 874 Report window.

  7. Specify the required information.

  8. To create the report, choose the Cost button. If relevant, information about problematic transactions is displayed in a separate window.

  9. To create an electronic file, choose the Export to File button.

Result

If you generate the electronic file successfully, a message appears confirming the creation of the file. The file name is PCN874.txt and it is located in the path you specified.

More Information

PCN 874 Report Window: Israel